Session 1: Economic Outlook A Presentation by George G. Wisner Executive Director National Investment Commission Republic of Liberia

2 Liberia Real GDP Growth Rate ( ; IMF Forecast from 2015) Pre-Ebola Forecast World Bank 2015 GDP Growth Forecast 3.0% AfDB 2015 GDP Growth Forecast 3.8%

 Fiscal restrictions imposed to manage impact of increased expenditure  Stabilized the exchange rate, enhanced banking sector liquidity  Paid civil servant salaries on time; accelerated goods & service spending  Avoided shortage of essential commodities  Over $58 million disbursed to public investment and recovery in 14/15  Reopened borders and lobbied for return of flights  Immediate cash transfers with the support of our Development Partners Revised projections for 2015 GDP Growth are 0.9% (IMF) – 3.0 % (World Bank)

Support for public finances, improved finance execution and governance including de- concentration - Major Health Investment Plan - Education sector priorities - WASH services - Social protection - GoL plan for UNMIL transition 4 Revitalize and diversify growth, targeting agribusiness export sectors Enable delivery of critical transport and energy infrastructure projects Strategy 1: Recovering Output & Growth Strategy 2: Strengthening Resilience and Reducing Vulnerability Strategy 3: Strengthening Public Finances and Ensuring Service Delivery

5 Revitalize and diversify growth, and address vulnerable employment Enable delivery of critical infrastructure projects Strategy 1: Recovering Output & Growth  Target Agro-processing in key sectors  Increase private sector finance for agribusinesses and farmers  Value chain coordination: cocoa, rubber, oil palm, fish/aqua.  Targeted investment in these value chains & agro-processing  Labor and supplier skills aligned to growth sectors  Financed cost overruns from Ebola on Priority Infrastructure Projects (e.g. Mt Coffee Hydro Dam)  Road Maintenance Fund, Low-income housing

- Major Health Investment Plan - Education sector priorities - WASH services - Social protection - GoL plan for UNMIL transition 6 Revitalize and diversify growth, and address vulnerable employment Enable delivery of critical infrastructure projects Strategy 1: Recovering Output & Growth Strategy 2: Strengthening Resilience and Reducing Vulnerability  Health Investment Plan: to improve and extend existing infrastructure and build fit for purpose Health workforce, including private investment in JFK Hospital & Redemption Hospital  Education: train and recruit teachers, improve quality of vocational education, strengthen county management structures, including private investment in affordable high quality education services  Increase WASH services for Ebola recovery and prevention including 100 boreholes into communities, health centres and schools, and a WASH regional centre  Increase coverage of social cash transfers to at least 50,000 households, sustain foster care grant and develop National Emergency Response Capability  Security: implement GoL Plan for UNMIL Transition

Support for public finances, improved finance execution and governance including de- concentration - Major Health Investment Plan - Education sector priorities - WASH services - Social protection - GoL plan for UNMIL transition 7 Revitalize and diversify growth, and address vulnerable employment Enable delivery of critical infrastructure projects Strategy 1: Recovering Output & Growth Strategy 2: Strengthening Resilience and Reducing Vulnerability Strategy 3: Strengthening Public Finances and Ensuring Service Delivery  Government revenues suffered twin shock of Ebola crisis and global commodity prices  Improving expenditure compliance processes and Budget execution  Ongoing Civil service reform and Decentralization

 Liberia’s Profit Tax Rate is 25% or 2% on turnover.  No capital controls  30% incentive deduction allowed on up to 100% of qualifying cost of equipment & machinery for investors over $1m  Can also obtain a tax deduction of 10% off cost of building & fixtures used in manufacturing process that produced finished products having 60% local raw material.  Investments exceeding $10m automatically incentivized  Investments in economically deprived zones or those generating more than 100 direct jobs qualify for additional incentives of up to 12.5% & further 10% respectively Incentives available for: Tourism, Manufacturing, Energy, Hospitals & clinics; Housing, Transportation; IT, Banking, Agriculture, Fisheries, Agro-Processing

 Liberia Business Registry (LBR)  One-Stop-Shop for enterprise development that formalizes enterprises in only 48 hours ◦ Online application process and online database ◦ Registration can be done through:  E-registration: after receiving account details applicant submits dossier online.  Assisted registration: applicants submit a paper-based dossier to the LBR staff who undertakes the registration procedures.  Staff are on hand to provide advice to applicants. IndicatorLiberia Sub-Saharan Africa OECD Procedures (number) Time (days) Cost (% of income per capita) Source: World Bank Doing Business 2015 CategoryForeign Business Registration Sole Proprietorship $700 US Partnership$800 US Corporation$900 US Source: Table 1: Ease of Starting a Business Indicator Table 2: Fees to Register a Business

Thank you! George W. Wisner